Exam 7: Analyzing Common Stocks

Quick Cement has a return on assets of 8%.If it has $1.5 million in total assets and a total asset turnover of 2, it follows that the firm must have a net profit margin of

If a firm has an ROA of 10% and an ROE of 10%, then the

Industry analysis focuses on the amount spent on research and development by individual companies within the industry.

When dividend payout ratios are higher than ________, investors should investigate whether or not they are sustainable.

The inventory turnover rate for a firm is 14.5 as compared to the relevant industry rate of 13.2.In this case, the firm is

The balance sheet summarizes the company's operations over the last fiscal year.

A company has sales of $640,000, net profit after taxes of $23,000, a total asset turnover of 4.17 and an equity multiplier of 1.67.What is the return on equity?

Nadine Enterprises has total assets of $240,000, a debt-equity ratio of 0.60, and a return on assets of 9%.What is the return on equity?

Cash flow from operations includes all of the following adjustments to net income EXCEPT

Economic factors such as a weak dollar will have a negative impact on all industrial sectors.

Return on assets is a very important analytical tool because it measures how effectively management is using a firm's assets to generate profits.